North American total joint replacement market to hit $4.2B in 4 years — Key trends to watch as knee implant price may decline


The North American total knee replacement market is expected to make huge strides over the next five years, according to a GlobalData report.


Here are three key statistics:

1. The market is expected to hit $4.2 billion by 2023.

2. Over the next few years, the total joint replacement market is expected to hit a 2.2 percent compound annual growth rate.

3. North America is 50 percent of the global knee reconstruction market.

"There are multiple paths the total knee replacement market could take as it develops," said healthcare analyst Tobe Mandu in the report. "For example, investments could be made into expensive capital equipment such as robots, which will result in consistent, reproducible implant placement, less soft tissue damage and shorter rehabilitation periods. This would lead to lower post-surgical costs."

In the third quarter of 2018, Stryker reported Mako robot sales were up 40 percent and that the company would continue to pursue the robotic strategy. Overall, Stryker reported an 8.4 percent knee sales increase while Johnson & Johnson, which does not have a robotic platform, reported knee sales dropped 2 percent in the quarter.

Mr. Mandu also reported custom implants could reduce post-acute care costs by delivering fewer complications but further research would be needed to truly analyze the economic impact.

"Knee reconstruction is a fully mature market that has experienced no major innovation over the last decade other than incremental improvements," said Mr. Mandu. "As health executives are scrutinizing purchases and using multiple channels to procure orthopedic devices at highly competitive prices, profit margins have been negatively affected, with global revenues falling in the large joint reconstruction space."

He expects the average selling price for total knee reconstruction implants to decline due to pressure from the competitive market and lower reimbursements, but a higher procedure volume will help cover the loss.

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